American Overseas Group Ltd, the Bermudian-incorporated insurance holding company, reported net income of $1.6 million for the second quarter, down from $2.5 million in the corresponding period last year.

The company, which is listed on the Bermuda Stock Exchange and tax-resident in the United Kingdom, said profit available to common shareholders equated to $33.60 per diluted share for the three months ended June 30, compared with $53.51 a year earlier.

Net earned property and casualty premiums declined 9.8 per cent to $11.5 million, from $12.8 million in the prior-year quarter. Fee income fell to $5 million from $5.4 million, while gross written premiums decreased by $10 million to $250.9 million.

Loss and loss-adjustment expenses represented 63.3 per cent of earned premium, compared with 58.3 per cent a year earlier. Operating expenses increased to $3.5 million from $3.3 million.

Total revenue for the quarter was $17.1 million, down from $18.7 million, while total expenses fell to $15 million from $15.4 million. For the first six months of the year, net income was $4.9 million, compared with $6.8 million for the same period in 2025.

AOG said it continued to direct excess capital towards debt reduction. During the first half of the year, it cut the principal outstanding on its 12 per cent senior secured notes by $6.5 million, leaving a $4.1 million balance at June 30 and total debt of $9.4 million.

The company then retired the remaining balance of those notes during the third quarter. Its total debt has now fallen to $5.3 million, comprising 9 per cent Series A senior secured notes.

AOG said it would take further steps to reduce leverage before considering returning value to shareholders, unless other opportunities arise. Its book value per weighted share rose to $1,338.04 at June 30, from $1,139.67 a year earlier.